International association of air transport

The International association of air transport (or AITA , in English International Air Transport Association or IATA ) is an international commercial organization of shipping companies air. These companies are especially authorized to consult the prices between them via this organization. This association, founded with Havana with Cuba in April 1945, was shown to act like a Cartel, and many conveyers at low prices are not complete members. Its head office is located at Montreal, in the tower of the Stock Exchange.

In 2006, it gathered 280 companies which accounted for 95% of the world traffic of passengers. Its Managing director since 2002 is Italian Giovanni Bisignani.

The IATA assigns codes of 3 letters to the airports (like at the important stations of railroad) and of the codes of 2 letters to the airline companies. These codes are used in the whole world.

They make also payments for the forwarding of dangerous articles and publish handbook IATA of Payment of Dangerous Articles, a reference recognized overall by the airline companies tranportant dispatching hazardous substances.

Note: the ICAO (of which the head office is also located at Montreal) also allots codes to the airports, 4 letters, and codes with the airline companies, 3 letters.

Clearing house

IATA is used by the companies members like Clearing house ( clearing house in English), which makes it possible the companies members to exchange the transport of passengers, in particular at the time of correspondences.

  • Example: a passenger carries out a way between a point has and a point B via a point C, using a C1 company between has and C, then a C2 company between C and B. However, the passenger buys the totality of his ticket to the C1 company which thus boxes the totality of the receipt whereas C2 will support the transport costs between C and B.C2 presents an invoice to C1 and receives, via the clearing house of the AITA, a share of the receipt, whereas C1 receives a commission in order to cover its expenses of sale.

  • Rule of distribution of the receipts

    • For a total revenue R comprising N sections, one affects a receipt to them according to a weighting given to each one:
      • P_i = has k_ {geo_i} d_i^ {(1-b)}
      • where k_ {geo_i} is a constant assigned to the geographical sector of appartance of the section, of value close to 1 (1.079 for a transatlantic section)
      • has is a constant aiming at bringing closer the value found to that of a distance
      • B is a value fixed by the AITA in order to surpondérer the short sections take account of the higher costs
      • the receipt assigned to a section becomes: R_i = {P_i \ over \ Sigma (P_i)} R
  • a specific rule can replace rule AITA if two companies agree on it by contract between them.
  • In addition to those aiming to the distribution of the receipt, of the particular rules of commissioning can exist, in particular in the event of Partage of code ( codesharing ).
  • the AITA fixes égalemet conventional foreign exchange rates between the companies members for the exchanges between them.

IATA: Educational establishment of Arts, Technology, Sciences and Craft industries

The IATA is also an institute of secondary education and created in 1941. It is located in Belgium

See too

Related articles

External bond

  • Official site IATA

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